Word: money
(lookup in dictionary)
(lookup stats)
Dates: during 1960-1969
Sort By: most recent first
(reverse)
...rolled along on a plateau since last fall. The federal budget is expected to shift from last year's deficit of $25 billion to a small surplus in fiscal 1969, resulting in far less Government-generated economic demand. Meanwhile, the Federal Reserve Board has moved to tighten the money supply. After growing at an annual rate of more than 7% in late 1968, the supply rose at a 3.7% rate in January, and is expected to show even slower growth in February...
...With money harder to get, interest rates have rocketed. The prime rate for the banks' major corporate customers has climbed to a historic high of 7%, and could go higher. Federal Housing Administration mortgage rates have risen from 61% to about 71% over the past year. A man who got a 25-year, $20,000 FHA mortage a year ago would have to make monthly payments of $135; if he signed a similar mortgage now, he would commonly have to pay $144. Last week a subsidiary of American Telephone & Telegraph issued a Triple-A bond with a 7% interest...
...this is much in line with what the Nixon Administration and the preceding Johnson Administration have intended. As McCracken said in Paris last week: "In general, we are now on the right course in economic policy. The budget is back under control. Money and credit policy is tracking about right. But we have had three years of excessive demand, and it naturally takes time to regain your balance...
...scheduled June 30 expiration date and resist various pressures for costly new Government spending programs, even when the Viet Nam war finally ends. For its part, the Federal Reserve will have to avoid the stop-and-go policies that in the past have produced sharp, erratic swings in the money supply and have brought criticism from some economists. The need is to show, as George W. Mitchell, one of the Federal Reserve's seven governors, puts it, that "we mean business in breaking the inflationary psychology...
Changing that psychology is Washington's most difficult economic task ahead. Some consumers and businessmen continue to pay sky-high prices for goods in the self-fulfilling expectation that prices are destined to rise higher still. Investors switch their money out of fixed-yield bonds and into stocks, which are a better hedge against inflation partly because buyers think that they are. Inflation has contributed to both the stock market overspeculation and Wall Street's glut of back-office paperwork. * Because of rampant inflation, unions increasingly demand unlimited cost-of-living wage increases instead of limited boosts. Complains...